Dear Valued Investor Partners,
We hope this update finds you well.
Please find below your August 2026 update on the Lois Anne wells and your partnership's interest in them.
OPERATIONS UPDATE, AUGUST 2026
Lois Anne #1-1: producing oil and selling gas.
Lois Anne #2-1: on pump, selling gas and now moving oil to the tanks.
Lois Anne #4-1: connected to the sales line and selling gas. Oil is expected to follow as gas production draws down pressure, as it did on the Lois Anne #2-1 well.
Lois Anne #3-1: to be completed once the Lois #1 saltwater disposal well is in service.
Lois #1 saltwater disposal well: in the final approval and transfer steps with the Oklahoma Corporation Commission. Once it is in service, the four wells can be produced at much higher production rates.
YOUR PARTNERSHIP'S INTEREST IN THE LOIS ANNE WELLS
Earlier updates advised that an interest in the Lois Anne wells would be allocated to your partnership once all six wells were online. Four wells are now drilled, and rather than wait for the #5-1 and #6-1, ASE has decided to allocate the four drilled wells now. This is a positive step. Our main goal is to get investors into revenue as soon as possible, and allocating the drilled wells now, rather than at the end of the development, is the fastest way to do that.
The percentage, effective date and terms of the allocation will be set out in a formal notice to each partnership once the ownership schedule is finalised with the operator. Nothing is required from you now, and there is no new subscription. Distributions from the interest will be paid through your partnership in the usual way, after the operating costs of the wells. We will include an estimated timing in the notice.
A NOTE ON THIS UPDATE
This is all the information we are able to provide at this time. We understand you may have further questions, and we will provide additional detail in the next portal update as the allocation is finalised and the wells move further into production.
Our next scheduled investor portal update will be released on October 12th, 2026.
Best regards,
THE ASE TEAM
